Gold prices were steady on Wednesday but remained on track to post their strongest annual gains in more than four decades, while other precious metals fell sharply as investors took profits following record highs.
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Spot gold held steady at $4,345.75 per ounce by 04:04 GMT, after hitting a record high of $4,549.71 on Friday.
U.S. gold futures for February delivery fell 0.5% to $4,365 per ounce.
The precious metal has surged 66% in 2025, marking its largest annual gain since 1979, when prices rose amid geopolitical factors such as the Iranian Revolution.
Gold’s rally in 2025 has been driven by interest rate cuts and bets on further monetary easing by the U.S. Federal Reserve, geopolitical conflicts, strong demand from central banks, and increased holdings in exchange-traded funds.
However, analysts said the recent pullback in precious metals is linked to technical factors in addition to weak trading activity.
Ilya Spivak, Head of Global Macro at Tastylive, said: “It seems we have very weak trading conditions in the markets due to the holidays.”
The U.S. dollar rose to its highest level in more than a week, making the dollar-denominated yellow metal more expensive for holders of other currencies.
Minutes from the Federal Reserve’s December meeting showed that policymakers agreed to cut interest rates, albeit after extensive debate. Nevertheless, traders are expecting two additional rate cuts next year.
Lower interest rates typically support non-yielding assets such as gold.
Spivak added: “Perhaps toward the end of the first quarter (of 2026), we may see gold test the $5,000 level. Certainly, the factors that have been driving gold—especially over the past year—appear to be inherently sustainable.”
Spot silver fell 4.5% on Wednesday to $73.06 per ounce, after reaching an all-time high of $83.62 on Monday.
Silver has risen by more than 150% since the start of the year, far outperforming gold, and is on track to record its best annual performance ever.
In 2025, silver received strong support from its designation as a critical mineral in the United States, supply constraints, declining inventories, and rising industrial and investment demand.
Spot platinum fell 12% to $1,932.55 per ounce after climbing to a record high of $2,478.50 on Monday.
Palladium dropped 7.1% to $1,496.75 per ounce and is on course to end the year up 65%, marking its best performance in 15 years.
Reuters
